How's your GMCL Pension doing?
While we haven't yet received GM Canada's letter concerning the status of our pension, it has come up in an article in the Globe & Mail of June 24, 2014.
While we can't verify all of the numbers in Greg Keenan's article, it seems basically correct. The wind up ratio has improved, the Prior Year Credit Balance (PYCB) is being drained, and the pension fund still has a large deficit.
Our pension's wind up ratio has improved to 83% from 75%. Certainly good news, but as we discussed at the Annual General Meeting on May 22, 2014, better isn't good enough. As part of the bailout agreement we lost our Pension Benefit Guarantee Fund (PBGF) coverage. IF we were covered, the PBGF would pay us $300 - 400 per month to offset some of the reduction in a bankruptcy situation. To regain coverage, our pension has to be 100% funded for three consecutive years.
At the 2013 AGM, based on 2011 data, we forecast that the PYCB would be about $150 million for the salaried pension in the 2013 report (just released), it is $187 million and on a glide path to be 0 in 2015. The combined pension deficit (salary and hourly) is over $3 billion, a significant number.
Our pension issues are far from resolved. GENMO continues to be pro-active to protect your pension. We to meet with MP’s, MPP’s, municipal politicians, FSCO (the pension regulator), The Ministry of Finance, the Finance Minister's Office, GM Canada, the media, etc .
We will continue to hope for the best but plan for the worst.
Thank you for your support.